Patterson-UTI Energy Acquires Global Ulterra Drilling Technologies In Cash & Stock Deal

Patterson-UTI Energy, Inc. PTEN plans to acquire Ulterra Drilling Technologies for $370 million cash and 34.9 million shares of PTEN common stock.

Fort Worth, Texas-based privately-owned Ulterra designs, manufactures, sells and rents PDC drill bits.

For 2023, the company expects Ulterra to generate $160 million-$180 million of EBITDA, generating revenue synergies within the first year.

"The addition of Ulterra to our drilling offering and our recent announcement to merge with NexTier Oilfield Solutions advances our strategy to enhance our positions in both drilling and completions, areas where Patterson-UTI has a strong 45-year history of operations and innovation," Andy Hendricks, Chief Executive Officer of Patterson-UTI, commented.

Also Read: Patterson-UTI Energy-NexTier Oilfield Make It Official, Announce Merger Of Equals

With a global footprint, Ulterra supports customers in over 30 countries with sales, manufacturing, and repair facilities throughout North and South America, the Middle East, and Asia.

Mike Holcomb, Patterson-UTI's Chief Operating Officer, said, "Ulterra's growing Middle East presence will broaden our geographic footprint and provide strong relationships with key customers in this international market."

The deal is expected to close in the third quarter of 2023.

Price Action: PTEN shares are trading lower by 0.16% to $12.30 on the last check Wednesday.